10 January 2014 17:34 [Source: ICIS news]
LONDON (ICIS)--European expandable polystyrene (EPS) prices are expected to rise in January due to higher feedstock costs and expectations of reasonable offtake, source said on Friday.
Feedstock styrene monomer prices settled €35/tonne higher in January following a €10/tonne increase in December.
An EPS producer said it would be looking for a €40-60/tonne increase in January, in light of higher demand and in order to recover the feedstock styrene increases. As sellers did not pass on higher feedstock styrene costs in December, many expect this will bolster their argument for higher January prices.
Another producer said: “We're still looking at a €30/tonne increase [for January].” It noted that demand is reasonably good so far in 2014, and the reaction from buyers has been positive on the whole, accepting the increase.
A price increase is expected to be supported by improved demand on the back of re-stocking activity after the December lull.
Nevertheless, a buyer said: "We're not ready to buy anything above the styrene monomer price [increase]."
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